Bitcoin's (BTC) price has been intensely scrutinized as investors and analysts watch for signs of its next major move.
Bitcoin ETF rejection fears mount
As of Jan. 5, BTC's price was stabilizing around $43,850 after a 4.75% drop from its local high, suggesting a cautious market awaiting decisive moves.
The drop appeared amid rumors of U.S. regulators rejecting a round of spot exchange-traded fund (ETF) applications, which have been a critical point of focus for the crypto community.
For instance, Fidelity Investments’ registration of a Bitcoin fund as a public security raised expectations for an approved Bitcoin ETF, indicating institutional interest and a potential regulatory milestone.
However, Bloomberg Intelligence analyst James Seyffart suggested that conclusive evidence of an ETF approval is still pending. Attorney Joe Carlasare and Senior Bloomberg ETF analyst Eric Balchunas reiterated this as well.
SEC is giving final comments as we speak, then issuers will submit final 19b-4s and S-1s soon after. So I mean this is def as close to "done" as we've been but no official approval as far as I know.— Eric Balchunas (@EricBalchunas) January 4, 2024
Bitcoin price technical analysis
On the technical front, indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are nearing a reset, which is historically a precursor to significant price action, as shown below.
Traders have advised caution on short-term expectations, while others have pointed to current prices as a strong buying opportunity, implying potential for upside movement.
Related: Spot Bitcoin ETF capital: Could funds potentially buy up all BTC in circulation?
In summary, Bitcoin's price is currently in a consolidation phase, with the market's eyes fixed on regulatory developments and technical indicators signaling a possible trend reversal.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.